Power Finance Corp will start selling tax-free bonds tomorrow to raise up to Rs 1,000 crore. "We will launch the offer to sell tax-free bonds worth up to Rs 1,000 crore tomorrow. The offer will end on January 16," PFC Director (Finance) R Nagarajan said. The leading power sector lender has the approval to mop up Rs 5,000 crore through issue of tax-free bonds. It has raised Rs 967 crore already through private placement of these bonds in October and November. "We expect good response for our offer starting tomorrow. The proceeds will be used for funding power projects," Nagarajan said. The 10-year and 15-year bonds carry coupon rates of 8.20 per cent and 8.30 per cent,respectively. The leading power sector lender also has the regulatory approval for USD 1 billion (about Rs 4,900 crore) Medium Term Note (MTN) programme that would tap international bond market. PFC expects to raise around Rs 30,000 crore in the current fiscal. More than half of the target amount is estimated to have already been raised. The company provides project term loans,equipment lease financing and short term loans for power projects,among others.
